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NNPC Loses N127 Billion In 8 Months

NNPC Group Managing Director, Maikanti Baru
NNPC Group Managing Director, Maikanti Baru

The latest financial report released by the Nigerian National Petroleum Corporation, NNPC, shows that the corporation recorded a loss of N127.73 billion between January and August this year.

The report, which was released on Wednesday, showed that in the month of August, the losses incurred by the NNPC reduced to N11.22 billion as against the N24.18 billion recorded in July.

It also showed that incidences of pipeline vandalism in the country were declining as government continues to engage stakeholders from the Niger Delta region on how to bring militancy activities in zone to an end.

“In August 2016, there was 28.94 percent drop in the number of pipeline vandalised points relative to July 2016; that is, from 311 vandalised points in July to 221 in August 2016,” the report stated.

According to the NNPC report, the largest single loss of N76.33 billionn came from the corporation’s headquarters during the eight-month period, and the total loss by the country’s refineries during the period in review was N48.69 billion.

It also showed that within the first 8 months of 2016, the NNPC has recorded a total expense of N1.14tn, against a total revenue of N1.02tn.

The report attributed the improvements recorded in August to the increase in Pipelines and Products Marketing Company’s coastal sales and the significant improvement in the Nigerian Petroleum Development Company’s revenue for the month.

It also pointed out that the average crude oil spot price stood at $44.87 barrel per day in August, up from $44.13bpd in the preceding month, and down from $45.69bpd a year ago.

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This, it said, represented an increase of 1.68 per cent from the previous month and a decrease of 1. 75 per cent from a year ago.




     

     

    The NNPC said that crude oil production stood at 1.65 million barrels per day in July, which indicates a 6.47 per cent decrease to what was produced bpd in June  and 22.43 per cent lower than the July 2015 performance.

    Part of the report read: “The shrinkage in the July production is due to subsisting force majeure at the Forcados terminal, which accounts for 300,000bpd.

    “Other factors that negatively impacted on production include the force majeure at the Que Iboe terminal following sabotage on the export loading line 2, sabotage of the Trans Niger Pipeline, Claugh Creek-Tebidaba pipeline and Escravos terminal delivery pipelines.”

    However, production from the deep water assets, which are beyond easy reach by militants, remained steady.

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